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Business Profit Tax Calculation in Ethiopia, Rates and Deductions with Examples

As per income tax proclamation no 979/2016, here are the business profit tax rates in Ethiopia.

Corporate businesses are required to pay 30% flat rate of business income tax.

Un-corporate or individual businesses are taxed in accordance with the following schedule below

Schedule “C”

Taxable Business Income

Tax rate

Deductible Amount

0 - 7,200 ETB

Exempt threshold  0%

0

7,201 - 19,400               

10%

720

19,401 - 38,400

15%

1,710

38,401 - 63,600

20%

3,630

63,601 - 93,600

25%

6,780

93,601 - 130,800

30%

11,460

Over 130,800

35%

18,000

 

Tags: Taxation in Ethiopia,, Salary Income Tax Calculation in Ethiopia,, Business Profit Tax in Ethiopia,, Salary Income Tax in Ethiopia,, Schedule "C" Income Tax in Ethiopia,

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